#CEXvsDEX101 🏛️ CEX vs DEX 101 – Real Explanation

🔹 What is CEX (Centralized Exchange)?

Examples: Binance, Coinbase, Bybit, OKX

✅ Controlled by companies/entities

✅ Requires KYC (identity verification)

✅ Fast and efficient order matching

✅ Complete features (margin, spot, futures)

🔐 You do not hold the private key

Advantages: Fast, liquid, user-friendly

Disadvantages: Centralized, prone to account freezes

🔸 What is DEX (Decentralized Exchange)?

Examples: Uniswap, PancakeSwap, dYdX

✅ Operates on the blockchain (smart contract)

✅ No KYC – you connect your wallet directly

✅ You hold the private key = full control of assets

🔄 Prices determined by algorithms (AMM)

Advantages: Privacy, full control, cannot be frozen

Disadvantages: Can be expensive (gas fees), UI not as intuitive as CEX

🔍 Brief Comparison

Feature CEX DEX Asset Control At Exchange in the hands of Users Transaction Speed Very Fast depends on my network Generally Required No Security Depends on exchange Depends on user Access New Tokens Sometimes Slow Often Earlier

🚨 Real Conclusion

Use CEX if you want convenience, liquidity, and complete features.

Use DEX if you prioritize privacy, decentralization, and control over assets.